Key Person Life Insurance to Safeguard Your Business

Tragedy doesn’t have to spell the end for your organization. Key person life insurance through NEC Insurance covers expenses while you account for the death or disablement of critical personnel.

What Is Key Employee Insurance and What Can It Do For You?

Key person life insurance, also known as key man life insurance, is a type of business insurance that companies can use to protect themselves in the event of an unexpected death or disability of an important employee. This policy provides financial protection for businesses by providing them with the funds necessary to hire and train a replacement for their key person, allowing the company to continue operations without interruption.

NEC Insurance is a seasoned insurance agency that can give you access to excellent insurance coverage. We’re prepared to work with your company to understand your needs and build a key person life insurance plan that ensures your continued success when a key employee dies or becomes disabled. With our key man life insurance, you can safeguard your future from potential losses due to the death or disability of your most valuable employees. The proceeds from the policy can be used to cover costs such as continued payroll, recruitment fees, lost profits, and more.

What Does Key Man Life Insurance Cover?

Key person life insurance covers any financial losses incurred due to an essential employee’s unexpected death or disablement. Some policies may also offer living benefit riders which provide access to funds if you become terminally ill or permanently disabled. This money can cover medical expenses or even pay off debts incurred during treatment.

NEC Insurance agency applies over 45 years of experience to highlight a path toward the coverage you deserve. Our policies are affordable and align with your core objectives. Depending on your policy’s terms and conditions, we can provide additional benefits to cover:

Lost profits due to decreased productivity or missed sales opportunities caused by the employee’s absence
Recruitment fees associated with hiring someone new
Continued payroll obligations while waiting for a new hire
Any other costs that arise due to the replacement process

Identify and Secure Ideal Policies for Your Situation

NEC understands it can be difficult to know whether you have the best possible deal on your key person life insurance plan. We help you explore your options and find robust coverage at the best value for your budget.

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Get to Know the Varieties of Key Man Life Insurance Policies

There are several types of key person insurance policies available to businesses. When you partner with NEC Insurance, we walk you through your options for coverage, evaluating your assets and existing insurance structure before recommending a plan that suits your budget. We understand key man insurance is vital to the longevity of your organization. Our agents apply every tool at our disposal to define and implement a winning solution for your company.

Common key employee insurance policies include:

Term Life Insurance

This is the most straightforward and affordable key man life insurance available. It provides a fixed death benefit for a set period (usually 10-30 years). As long as you pay the premiums, you receive the benefits. When the term ends, you can choose to renew the plan or opt for a new policy. If the insured individual passes away before their term ends, the policy pays out a predetermined amount to your business.

Whole Life Insurance

As its name implies, whole life insurance provides coverage for your entire lifespan (as long as premiums are kept up). If the key figure leaves the company, you can cancel the policy and retain the total cash value. Depending on which plan you choose, it also provides additional benefits such as cash value growth, living benefit riders, and more.

Universal Life Insurance

This form of key man life insurance combines features from both term and whole life policies. Like term policies, universal policies provide coverage for a specified period of time; however, they also offer added flexibility in terms of premium payments and death benefits.

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